C Corp final year - 1099 dividend, box 9

[LTKK301]

The corporation filed a final year returns on 5/15/2019. What's the amount that needs to be issue to shareholder on form 1099 dividend, box 9 liquidation distribution? The 1120 tax return shows a $5,131 liquidation adjustments (cash dist) on M-2. The cash taken out to close the corp bank account was $10,131. The only three item on the balance sheet were

Cash 10,131

Common Stock 5,000

Retained Earnings 5,131

 

 

 

[EricF]

The cash distribution of $10,131 would be on 1099-DIV in Box 9.  Assuming the shareholder's basis is the $5,000 of common stock, he would report a capital gain with $10,131 proceeds and $5,000 basis, paying tax on the gain of $5,131, representing the retained earnings that are taxed again to a C corporation shareholder.

[LTKK301]

thank you Eric